ANNUAL REPORT BY THE DESIGN BUILD EXECUTIVE COMMITTEE

ANNUAL REPORT BY THE DESIGN BUILD EXECUTIVE COMMITTEE

REGARDING THE STATUS OF THE CITY OF BALTIMORE’S DESIGN BUILD PROJECTS

 

            As mandated by the Design Build Project Delivery Procedures approved by the Board of Estimates on November 2, 2011, the Design Build Executive Committee (“DBEC”) is required to annually report on the description, status and participation by minority and women owned businesses on all pending Design Build projects.  In addition, the DBEC makes recommendations regarding policy changes or implementation measures.  The DBEC submits this Annual Report for the period from August 2017 through August 2018 covering the three projects currently under contract and approved by the DBEC and Board of Estimates (“BOE”).

 

I.                            DEPARTMENT OF TRANSPORTATION

CENTRAL AVENUE PROJECT TR 12317

 

            The Central Avenue Design Build Project (“Project”) is the Department of Transportation’s (“DOT”) and the City’s first design-build project.[1]  The Project primarily consists of the reconstruction of Central Avenue between Lancaster Street and Baltimore Street into an urban boulevard.  The total length of roadway construction is approximately 3,200 linear feet (8 blocks).  The scope of roadwork includes full-depth pavement reconstruction, concrete curb/gutter and sidewalk reconstruction, construction of ADA-compliant pedestrian ramps and driveway entrances within the Project limits, roadway drainage system improvements, new street and pedestrian lighting, new pavement marking and signing, upgrades to water, sewer, and conduit utilities, and new traffic and pedestrian signals.  The key element of the Project is the extension of Central Avenue with a new Harbor Point Connector Bridge over the tidal inlet waters to the Harbor Point development site.  The length of the Harbor Point Connector Bridge is approximately 260 feet.

 

A.        Project Status as of July 2018

 

  • The Central Avenue Project was awarded to Allan Myers MD, Inc., (“Myers”) on March 30, 2016.  The Contract amount was $46,777,777.00.  The Federal Funding is less than the typical 80% because some items of the project are not eligible for federal funding.  The balance of any non-federal aid funded work will be paid by the City, primarily from the Harbor Point Developer TIF contributions.

 

  • Schedule Related
    • Notice to Proceed (NTP) was issued for June 15, 2016 and the original completion was to be June 2021, which is NTP plus 5 years. 
    • Myers’ originally proposed to complete the work by approximately mid-2019.  However, construction challenges and site conditions, required schedule adjustments.  Currently, the schedule has reverted to the June 2021 time period.
    • The Harbor Point Connector Bridge, which is part of Phase 1, was partially opened to traffic and pedestrians on July 2, 2018.
    • Currently, the contractor is completing Phase 1 construction of Central Avenue between Lancaster Street and Aliceanna Street. Construction of Phase 1 is approximately 90% complete.  On-going Phase 1 work includes final utility connections, final roadway paving, and replacement of the Aliceanna Street Bridge.
    • Work on Phase 2, extending from above Aliceanna Street to just south of Baltimore Street, including design, coordination, reviews, approvals, and planning is ongoing.  Phases 1 and 2 include many elements of pedestrian amenities and streetscape elements.  Phase 2 construction will start in the Fall of 2018.

 

  • Construction of a new 26 story Liberty East high-rise building which includes the new Whole Foods Market, luxury condominiums, and high-end apartments is underway between Lancaster Street and Aliceanna Street (south to north) and Central Avenue and Eden Street (west to east).  This has required rigorous coordination and cooperation between the contractors.  Work is progressing satisfactorily on both projects.

 

  • Scope Changes and Change Orders
    • There have been several scope changes on the project under Phase 1. These have included: additional aesthetic treatments on the bridge, installation of more energy efficient lighting, a delay in positioning of the north crane near Ouzo Bay, structural concrete restoration to the culvert located between Aliceanna and Lancaster Streets, and relocation and addition of utilities to accommodate present and future City needs.
    • Change orders have included limiting staging areas, interactions with adjacent developers and property owners, various investigations for potential changes such as DPW’s backflow preventer or DOT’s realignment of the Lancaster Street intersections, placement of a crane on a barge instead of on Harbor Point, field conditions, conduit relocation, and the interval between bidding and awarding.  The change order requests originating from Myers are being actively addressed and resolved by the City.  A limited few may need to be resolved through the contract mandated claims process.

 

  • Logistics (Ongoing Progress)
    • The Aliceanna Street Bridge design is approved.
    • Design submittals are now mostly complete for Phase 2 work including the Fleet Street Bridge.
    • The Phase 2 Streetscape design review is approximately 2/3 complete.
    • Construction submittals such as RFIs, material selection, shop drawings, redline revisions continue to be submitted, reviewed and processed.
    • The City is coordinating with all stakeholders, property developers, contractors, City design and City construction management sections as needed.

 

  • Special Concerns
    • The Liberty East /Whole Foods high-rise being constructed by Bozzuto Construction Inc. for Harbor East Development Group is resulting in some work zone overlaps between Bozzuto and Myers.
    • Utility relocations and approvals are challenging and complicated. This is due in part to the interaction of 3rd party lessees.
    • The proposed gas line work from Aliceanna to Harbor Point has been eliminated from the Project.
    • The City has continued to conduct meetings and facilitate full communication between DOT, Myers and various stakeholders. 
    • Traffic detours and congestion will be an ongoing concern.
    • This is the City’s first DB project and one of DOT’s largest construction projects. It is also technically very complex, located in a highly developed and growing portion of the City.  However, once the construction moves north of Aliceanna Street and now that the Harbor Point Bridge is opened for traffic, we anticipate the work progressing smoothly.

 

B.  Minority and Women Owned Business Participation

 

            The Project is federally funded, and state Disadvantaged Business Enterprise standards apply, not the City’s MBE/WBE.  Myers is meeting the established 30% overall DBE goal; 28% construction and 2% design goals as follows. The breakouts below reflect the commitments that Myers had received at the time of bidding.  Myers will continue to make some revisions as the design becomes more complete, so it can effectively meet the participation goals:

 

Design Phase DBE participation                                                                      Total Paid to Date

                                                                                                                        July 2018

 

  • Athavale, Lystad & Associates                                         $428,500.00            $415,677.82 (97%)
  • Floura Teeter Landscape Architects, Inc.                       $62,000.00            $96,592.80 (155.8%)
  • J.K. Datta Consultants, Inc.                                                $206,500.00*                         N/A
  • Findling, Inc.                                                                         $299,500.00         $253,405.11 (84.6%)
  • Synterra Ltd.                                                                        $82,900.00           $82,900.00 (100.00%)
  • Albrecht Engineering, Inc.                                                 $62,000.00            $30,728.85 (49.5%)
  • Remline Corporation                                                          $82,900.00            $67,642.42 (81.5%)

 

*J. K. Datta went out of business. Myers balanced Datta’s portion amongst the previously identified firms.

 

TOTAL DESIGN DBE PARTICIPATION                                      $1,224,300.00 (2.6%)

TOTAL DESIGN DBE PARTICIPATION THRU JULY 2018                  $946,947.00 (2.02%)

 

Construction Phase DBE Participation

 

  • J&M Sweeping                                                          $250,000.00             $273.70 (0.1%)         
  • Barbie’s Recycling & Hauling, Inc.                         $1,200,000.00          $1,020.00 (0.085%)
  • Load Runner                                                             $1,200,000.00         $97,728.50 (8.14%)
  • Quarry Products Unlimited, Inc.                          $93,000.00                $0.00 (0.00%)
  • Machado Construction Co. Inc.                           $4,400,000.00           $196,029.43 (4.45%)
  • Priceless Industries, Inc.                                       $145,000.00               $2,773.50 (1.91%)
  • Native Terrain Restoration Services                    $290,000.00              $0.00  (0.00%)
  • Traffic Systems, Inc.                                               $2,650,000.00            $106,763.00 (4.02%)
  • Road Safety, LLC.                                                     $200,000.00             $32,687.53 (16.34%)
  • Nasir and Associates, LLC.                                     $1,500,000.              $1,965,544.26 131.03%)
  • Mohawk Bridge & Iron Inc.                                    $700,000.00              $414,269.40 (59.18%)
  • Wilton Corporation                                                 $200,000.00              $31,571.68 (15.78%)
  • Doughboy Hauling                                                  $15,137.97              $15,137.97 (100%)
  • GE Frisco                                                                   $112,487.24            $112,487.24 (100%)
  • Hirshmugl Heine & Assoc.                                     $4,680.00                 $4,680.00 (100%)
  • TNM Trucking                                                          $11,900                    $11,900.00 (100%)
  • Traffic Engineering Serv.                                       $20,995.00               $20,995.00 (100%)
  • Utility Imaging                                                         $8,400.00                $8,400.00 (100%)
  • Handon Services                                                     $59,728.30             $59,728.30 (100%)

 

TOTAL CONST. DBE PARTICIPATION                                                                                                                                   $13,061,328.00 (27.9%)

TOTAL CONST. DBE PARTICIPATION THRU JULY 2018                     $3,316,124.51  (7.08%)

 

TOTAL DBE PARTICIPATION                                                      $14,052,300.00 (30.04%)

TOTAL DBE PARTICIPATION THRU JULY 2018                      $4,029,742.51 (8.62%)

 

C.  Implementation and Policy Challenges with Recommendation

 

The DBEC recognizes that the Project is in an active stage of design and construction and as a result, DOT does not yet have specific or detailed recommendations to make regarding implementation or policy challenges.  DOT is compiling information regarding such matters which will be reviewed internally to arrive at detailed recommendations for the DBEC’s consideration and inclusion in later DBEC reports.

 

II.                          DEPARTMENT OF PUBLIC WORKS

BACK RIVER HEADWORKS PROJECT SC 918H

 

            The Department of Public Works (“DPW”), Back River Headworks Improvements Project (“Headworks Project”) primarily entails construction of new headworks facilities, consisting of an influent pumping station, a fine screen facility, and a grit removal facility, and wet weather storage facilities.  The City’s Wet Weather Program determined that the construction of the Headworks Project is the single, most cost-effective solution to elimination of the City’s sanitary sewer overflows and comply with the Wet Weather Consent Decree.

 

The Headworks Project is being delivered under the Construction Manager-at-Risk (CMAR) delivery method and is the City’s first CMAR project.  The CMAR delivery method is essentially a hybrid of the Design Build method in that there is a distinct design phase followed by construction.  One of the key distinctions between CMAR and DB is that there are two separate contracts; one for design, the other for construction.  One procurement is used to advertise both phases and only one firm is selected by the City.  Following the design phase, the winning bidder and the City engage in negotiations to agree on a Guaranteed Maximum Price (“GMP”).  If the parties agree on GMP then the successful firm contracts with the City for the construction phase.  If GMP cannot be agreed, then the City would be free to re-advertise the construction portion of the work. 

 

The Headworks Project was originally advertised as a traditional design-bid-build project with a 100% design having been completed prior to advertising for bids.  Two bids were received, the lowest of which was $90,000,000.00 over the budget for the project.  DPW then approached the DBEC about the possibility of structuring the Headworks Project using a modified CMAR method.[2]  DPW and the DBEC concluded that a modified CMAR delivery method had the best potential to reduce construction costs.  The DBEC concluded that given the similarity between this CMAR project and traditional design build projects that the Headworks project should comply, to the greatest extent possible, with the Design Build Resolution of the Board of Estimates (“BOE”) and be overseen by the DBEC.  The BOE agreed and accepted the DBEC’s recommendation to use the CMAR delivery method on January 27, 2016.

 

A.  Project Status as of August 9, 2018

 

Background Pre-Construction:

  • Project was advertised on January 29, 2016 after the BOE approved the request for Proposals using the CMAR method.
  • Four proposals were received on March 2, 2016
    • All proposals were found to be responsive and were evaluated
  • The evaluation process followed the procedures as established in the RFP which included review based on the following criteria
    • Qualifications and approach (65%)
    • Financial capacity and proposed fees (15%)
    • Interview (20%)
  • Interviews were conducted on March 15, 2016
  • All scoring was reviewed and finalized by the evaluation panelists on March 15, 2016
  • March 25, 2016 – Selection of preferred CMAR firm, a joint venture between Clark Construction and Ulliman Schutte, Inc. (“Clark/US”)
  • March 29, 2016 – Presentation to DBEC which approved the selection of Clark/US.
  • March 30, 2016 – DPW notified Clark/US of DPW’s intent to recommend award by the BOE to Clark/US, subject to reaching agreement on all terms and conditions and completion of all administrative procedures
  • May 4, 2016 – The BOE Approved award to Clark/US.
  • May 25, 2016 – CMAR firm submitted signed contract documents for processing by DPW.
  • July 28, 2017 Notice to Proceed for Pre-Construction was issued.
  • GMP Estimates were received:
    • November 2016.
    • January 2017.
  • GMP package bids were received:
    • March 2017.
    • April 2017.
  • GMP Negotiations progressed from April through May 2017.
  • GMP Package and Pricing were submitted to the BOE for processing in May 2017
  • GMP cost of $429,776,789.
  • BOE Approval of the GMP Package and Contract for the Headworks Construction was approved on June 28, 2017.

 

Construction Progress to Date:

  • Construction Phase Milestones:
    • June 29, 2017 – Construction NTP
    • December 30, 2020 – Technical Compliance Milestone.
    • October 31, 2021 – Substantial Completion.
    • October 31, 2021 – City issue Conditional Acceptance.

 

  • Approximately 18,000 yards of concrete have been placed, which is 23% complete for the overall project concrete.  The process mechanical installation is progressing in conjunction with the project concrete.
    • Influent Pump Station – 59% of concrete complete
    • Fine Screen Facility – 18% of concrete complete
    • Grit Facility – 18% of concrete complete
  • Support of Excavation installation is ongoing at Influent Conduit Nos. 1 and 2 in preparation for the Influent Junction Chamber construction. 
  • Flow diversion of Influent Conduits IC-1 and IC-2 will be necessary to complete Influent Junction Chamber Support of Excavation activities.
  • Indicator and reaction piles at Equalization Tank Nos. 1 and 2 have been tested.  Test results will be analyzed to validate design prior to production pile installation.
  • Site ductbank installation has commenced at the administration building and main substation.
  • Long lead process mechanical equipment submittals are under review.
  • Schedule Baseline was approved.  Progress and proposed logic revision are currently under review.
  • Weekly issues, Quality Control/Quality Assurance, schedule, partnering, risk, start-up, Maintenance of Plant Operations, and Initial/ Preparatory meetings are held regularly with all involved parties.
  • Overall the Project is trending to meet its Technical and Completion Milestones

 

B.  Minority and Women Owned Business Participation

           

            The Pre-Construction phase of the project was funded by the City and Baltimore County therefore City MBE/WBE Goals of 10% and 3% respectively apply during the pre-construction process.

 

Pre-Construction Fee                                             $3,490,000

Contractual Participation Requirements:          MBE $349,000 10%  

                                                                        WBE $104,700 3%

 

Pre-Construction Phase MBE/WBE participation (completed 4/30/17):

 

SUBCONTRACTOR

Amount Reported

Participation Reported

Shah Associates

$ 183,008

5.24%

Roane’s

$ 71,444

2.05%

SP Arch

$34,848  

1.0%

Native Sons

$ 60,000

1.72%

Horton

$20,800

0.6%

C. L. McCoy

$ 7,000

0.20%

CMC Repro & Assoc.

$9,310  

0.27%

MBE Totals

$ 386,410

 11.07%

 

 

 

SUBCONTRACTOR

Amount Reported

Participation Reported

 

 

 

Stella May

$ 46,812

1.34%

Carroll

$48,722  

1.40%

Keep U Clean Jan Svc

$ 4,100

0.12%

WBE Totals

$ 99,634

2.85%

     

 

Construction Phase MBE/WBE Participation:

 

The Construction phase of the Headworks Project is being funded by the state’s revolving fund therefore the state’s Disadvantaged Business Enterprise standards apply and not the City’s MBE/WBE standards.  The Construction phase of the project has the MBE and WBE State Goals of 18% and 16% respectively.

 

Clark/US’s estimates for the MBE/WBE participation are 12.82% and 5.47% respectively at this time.  The level of efforts expended on contacting regional and local DBE businesses has been documented and will continue to be recorded in accordance with MDE guidelines for reporting purposes.

 

The estimated percentages translate into the following dollar amounts to be spent with the MBE/WBE subcontractors, based on the Contract amount of $429,776,789:

 

  • MBE 12.82%       $55,092,484
  • WBE   5.47%       $23,488,362

 

At this time, Clark/US has invoiced for $94,561,901.86, which is approximately 22% of the contract amount.  The following MBE/WBE participation has been reported:

SUBCONTRACTOR

MBE CONTRACT

Participation Reported

MBE Companies

Amount

% of total contract

Amount

% of invoiced amount

A&S Refuse LLC

$551,000

0.13%

$5,769

0.01%

Capital Development Design, Inc.

$1,870,402

0.44%

$343,911

0.36%

EMC2, Inc.

$75,200

0.02%

-

-

Horton

$12,500,000

2.91%

$547,281

0.58%

Innovo Construction LLC

$1,990,000

0.46%

$23,905

0.03%

JD Belfield

$60,000

0.01%

-

-

Keep U Clean Janitorial Svc.

$121,816

0.03%

$19,088

0.02%

LCCO

$330,000

0.08%

-

-

NSL/Freestate

$16,636,200

3.87%

$579,857

0.61%

Skyline

$388,000

0.09%

-

-

TBD

$20,569,866

4.79%

-

-

Baseline

 

 

$562,713

0.60%

Bulldog Construction

 

 

$245,759

0.26%

CMC Repro & Assoc.

 

 

$11,201

0.01%

TMI Striping

 

 

$1,600

0.00%

MBE Totals

$55,092,484

12.82%

$2,341,084

2.48%

   

 

   

 

 

SUBCONTRACTOR

WBE CONTRACT

Participation Reported

WBE Companies

Amount

% of contract amount

Amount

% of invoiced amount

Baltimore Waterproofing

$233,395

0.05%

-

-

Regional Contracting Services LLC

$2,982,905

0.68%

$436,458

0.46%

Stella May

$4,090,847

0.95%

$2,968,493

3.14%

TBD

$16,222,936

3.77%

 

 

 

 

 

 

 

WBE Totals

$23,488,362

5.47%

$3,404,951

3.60%

 

C.        Implementation and Policy Challenges with Recommendation

 

 

From the first year of construction, DPW has the following recommendations for DBEC’s consideration:

 

  • Engage and award the project to the CMAR prior to 30% design documents to maximize their input
  • Place monetary provisions to enforce timely baseline schedule development
  • This contract used the Army Corps of Engineers specification regarding Quality Assurance/Quality Controls.  The DBEC should consider modifying this specification so that it is more applicable to the Construction Industry

 

III.               DEPARTMENT OF TRANSPORTATION

COMPREHENSIVE CONDUIT FACILITY DESIGN, MANAGEMENT, AND CONSTRUCTION SERVICES PROJECT (PMAR) TR 16020

 

The Comprehensive Conduit Facility Design, Management, and Construction Services Project (“Project”) is one of the Department of Transportation’s (“DOT”) and the City’s first Program Manager at Risk projects.  DOT approached the DBEC about the possibility of structuring the Project using a Program Manager at Risk (“PMAR”) approach. 

 

The PMAR delivery method is essentially a hybrid of the Design Build method.  The DBEC concluded that given the similarity between this PMAR project and traditional design build projects that the Project should comply, to the greatest extent possible, with the Design Build Resolution of the BOE and be overseen by the DBEC.  Suitability of the project for the PMAR approach was determined by several factors.  During development of the Request for Proposals, DOT and the Conduit Section determined that an expedited schedule was required because untimely project execution could result in loss of available funding.  Additionally, it was determined that the nature of the work is not conducive to Design-Bid-Build; inspection, design, construction, and database population must occur concurrently lending itself to Program/Asset Management.  For maintaining the conduit infrastructure, design work does not necessarily dictate construction.  Instead, inspection reveals the need for design and then construction commences.  The BOE agreed with the approach selected by DOT and DBEC and awarded the contract in August 2016.

 

The Project primarily consists of inspection of conduit manholes (i.e. the structural condition, duct occupancy, cable owner identification, etc.), installation of an asset security mechanism retrofitted to secure/monitor entry of conduit manholes and cable racks as needed; design, construction, excavation, modification, repair of manhole chimney top slab, manhole replacement, and conduit duct bank; construction management; data input into a GIS database; financial tracking and reporting; safety retrofits and program compliance system-wide.

 

  1. Project Status as of June 2018

 

  • Project Awarded to KCI-CG Tri-Venture on August 10, 2016.  Contract Amount $26,108,286.00 (Professional Services - $5,841,986.00 Construction - $20,266,300.00) per year for five (5) years.

 

  • Schedule Related
  • Notice to Proceed was issued for February 22, 2017.
  • The Contract expires February 20, 2022 with the option of two (2) one-year extensions.
  • Scope Changes and Change Orders – NO CHANGE ORDERS HAVE BEEN EXECUTED TO DATE.

To date, multiple professional and construction services tasks have been completed. Professional services generally consist of manhole and tracing inspections, design of manholes, asset management support services, to mention a few. Construction services generally consist of clearing obstructions in conduits, repairing/rehabilitating electric manholes

 

Below is a summary of the various tasks executed under this Contract.

 

 

 

 

 

  • Logistics

 

Within this Contract, an allowance has been made for unanticipated reactive maintenance work. Reactive maintenance work consists of activities generated as a result of service requests received from the Conduit Maintenance yard. These service requests typically consist of manhole frame and cover replacements, duct obstruction clearing, split ducting, etc. On the other hand, this Contract has also developed a proactive maintenance approach that focuses on identifying and attacking problem corridors before they result in service requests by the Conduit lessees.

 

Conducting proactive maintenance work requires developing criteria to rank and prioritize projects. The prioritization has been developed in a manner that optimizes existing and future Conduit Division resources. Capital drivers included in the ranking system include but are not limited to: the condition of the asset, criticality of the damage to the asset, asset location in proximity to other projects/repairs, sociopolitical factors, estimated repair cost and availability of resources to repair the asset.

 

Conduit Program logistics for strategic planning and prioritization to rehabilitate segments of the system are determined by a multitude of factors. Our program inspection, records research, and asset management allow for determination of the following factors:

  • Duct Obstruction/Duct Availability
  • Alternative Duct Route
  • Benefit to planned Duct Lease Work in the area
  • Impacts of Cable Owners Service Outage
  • Duct Material, Age, and Service life
  • Adjacent Utility Impacts on Conduit
  • Opportunity for Economic Development/Sociopolitical Priority
  • Other planned/ongoing projects
  • Structural Assessment
  • External influences

 

A ranking system has been established which associates points for the aforementioned criteria. This process will inform our Capital Planning strategy to prioritize many of the forecasted capital projects.

 

  1. Minority and Women Owned Business Participation

 

The Project is not federally funded and as such, the City’s MBE/WBE standards apply, not the State Disadvantaged Business Enterprise standards.  KCI-CG is fully committed to meeting the established 27% MBE and 10% WBE goal for professional services and 27% MBE and 7% goal for construction.  The breakouts below reflect MBE/WBE participation from Contract award through the end of FY18:

 

 

 

Much of Contract Year 1 was spent developing and executing Professional services type task orders that we anticipate will generate construction task orders in the future years. KCI-CG will continue to make some revisions as tasks are received so it can effectively meet the anticipated participation goals

 

C.        Implementation and Policy Challenges with Recommendation

 

The DBEC recognizes that this Project is in the active stage of design and construction and understands that DOT does not yet have specific or detailed recommendations to make regarding implementation or policy challenges.  DOT is compiling a data set of such matters which will be reviewed internally to arrive at detailed recommendations for the DBEC’s consideration and inclusion in later DBEC reports.

 

[1]  As of the date of issuance of this Report, the Central Avenue project is the only technically ‘pure’ design build project in process by the City.  The remaining two projects addressed in this Report are variants on the design build delivery method but are overseen by the DBEC.

[2]  Modified by virtue of the fact that a 100% design existed.  The design phase for the Headworks Projects, unlike traditional CMAR projects consists mainly of value engineering and to modify the 100% design to reduce costs.

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